Trade mark owners can block imports: the European Court of Justice gives a seminal ruling that strengthens the powers of brand owners. (Bird & Bird)

Brand Strategy, January, 2002 by Nicola Morriss

Davidoff doesn't want cut-price imports of its "Cool Water" perfume. Levi's doesn't want Tesco selling its jeans for less than the authorised price. Is the brand owner set against the consumer?

The European Court of Justice (ECJ) has given its long-awaited judgment in these two cases, which both concerned the rights of brand owners to control the importation (and hence the price) of their products within the European Economic Area (EEA). It has come down heavily in favour of brand owners, by holding that, unless branded goods are placed on the market in the EEA with the brand owner's consent (at which point his trade mark rights are said to be "exhausted"), the brand owner can use his trade marks to prevent the importation of those particular goods into the EEA....